Whitepaper Developing the Business Case for IT Asset Management (ITAM)

Transcription

1 Whitepaper Developing the Business Case for IT Asset Management (ITAM) By David Foxen (The ITAM Review) Developing the business case for IT Asset Management (ITAM) 1

2 Table of Contents Introduction... 3 Part 1: Why implement ITAM?... 4 Part 2: Identifying the ITAM goals (IT and overall business perspective) 7 Part 3: The positives of ITAM... 9 Part 4: What resources will be required to implement ITAM? Part 5: Building the justification Part 6: Gaining senior management support Part 7: Tracking ITAM progress Part 8: Addressing the risks Conclusion... 22

3 Introduction IT Asset Management is a vital part of any organisation. ITAM can help organisations manage a number of risks and can also help saving an organisation huge amounts of money. However, like any emergent technology, processes or department there needs to be a clear justification for the organisation to invest money, time and effort in. It needs to address a problem, or improve existing areas of the organisation. That is why a business case needs to be created before the start of an ITAM project or the implementation of ITAM. The business needs to know exactly what it is investing in, and why they should. Depending on the organisation, getting approval to start a new project can take a long time, so it is vital to build a strong, comprehensive business case to ensure that ITAM is accepted, supported and given the green light. Each business is different. The information and advice we will give in this document is only a framework based on best practice, expertise and past experiences. Some of the elements may need to be tweaked or modified for your organisation, but the core content and subjects of the business case still needs to be the same. Developing the business case for IT Asset Management (ITAM) 3

4 Part 1: Why implement ITAM? ITAM covers a number of different areas, with a number of elements being added to ITAM s remit all the time (such as mobile assets, and in the future, wearable asset management). ITAM is an extremely important element to any organisations successes, with a number of key reasons as to why an organisation should implement ITAM. 1.1 Risk management Risks identified and managed by ITAM vary from financial to legal risks. Financial risks include overspend on hardware and software assets; fines for not being compliant and also money being overspend in IT in general. Organisations are currently very money conscious thanks to the current economy, so ITAM can prove to be a very valuable cost reduction and money saving area. IT is often seen within businesses as something that drain the organisations finances as the majority of the time the IT department do not actually make an organisation money. However, with ITAM the IT can be seen as actively trying to help with the financial elements of an organisation. Legal risks include using under licensed software, using counterfeit software, purchasing hardware from illegal sources and not properly disposing of hardware assets. Both can result in financial punishments, but also legal punishments. ITAM can help manage very serious risks that the organisation faces. Without ITAM, an organisation could end up operating illegally and could face disastrous ramifications including prison for individuals and the closure of the business. Whilst these are worst case scenario examples, it could and has happened in the past to people and companies actively and knowingly doing things wrong with hardware and software assets. ITAM is now a vital practice in helping organisations manage risk and ultimately ensure that there are no surprises when it comes to audits or external reviews. 1.2 Financial management All organisations want to make cost savings. It s a tough time financially for a number of organisations, so ITAM can help save a lot of money within IT and the business as a whole. ITAM can help organisations have complete transparency of their software and hardware spend, which helps them to predict and provide better IT budgets for the next financial years. ITAM also helps the organisation manage their IT spend with a number of different and comprehensive data sets available that can help the business make an informed decision regarding future hardware and software purchases. It is important that organisations implement the right tools and processes to help with financial management. Simply implementing an ITAM solution for example does not constitute the organisation doing ITAM, there needs to be a balance of technologies, processes and people in place to ensure that ITAM is effectively managed and the organisations IT finances are put to effective use. 1.3 Streamlining and standardizing If an organisation wants to be efficient with its IT department, then it needs to be streamlined and standardized as much as possible. ITAM can help achieve IT streamlining and standardizing in a big way. Hardware, software and other forms of IT assets can be standardized which help the organisation save money, time and ensures the IT department work quickly and effectively. Standardizing software is when the organisation approves a list of software applications that can be used by users. This reduces the number of applications that are installed within the

5 organisation, thus reducing the amount of money spent on software. Compiling a standardized software list also helps with the services desk SLA s for deploying the software, which improves productivity. It also ensures that the organisation can keep on top of software compliancy. If an organisation has a standard list of software, then it is a lot easier to manage software licenses and ensure that all licenses are being optimized. Standardizing software also means that the service desk can provide better support to users as they don t have to try and work out how hundreds of different software vendors work. Standardizing hardware means that the organisation specifically defines a standard list of hardware that is available to users. This can result in a large hardware contract with the vendor of the organisations choice for them to provide all of the hardware assets. This means that the services desk can become experts in the hardware provided as all users have the same model of desktop for example. It reduces the amount of time spent fixing hardware assets and also means that there are no compatibility issues. Other elements that can be standardised include mobile devices, printers, scanners and any other form of IT hardware. Standardizing all assets will result in savings, and the ability for the organisation to support the hardware internally without the need to pay for external help and support. 1.4 Hardware asset management One of the big factors within ITAM is Hardware Asset Management (HAM). Hardware asset management is the effective management of hardware assets throughout their lifecycle. HAM relates to all hardware such as desktops, laptops, switches, routers and physical servers. HAM can be a job in itself as there are lots of different hardware elements to take into consideration. Effective HAM helps to aid the organisation in understanding the financial worth of hardware assets, and also manage the assets from the point of request right through to when the asset is no longer required. A number of HAM processes help towards successful ITAM, including a request process, procurement process and disposal process. There are also a number of ways in which an organisation can manage its hardware assets, including inventory and discovery ITAM tools. Furthermore, the physical asset needs to be managed and this can be done through something called Asset Tagging. Asset tagging is when a physical asset is given a unique ID, barcode or radio frequency tag that allows the physical assets location to be tracked to ensure the organisation knows exactly where it is. 1.5 Software asset management The next big factor and focus point for ITAM is Software Asset Management (SAM). Software asset management is the management of software assets throughout their lifecycle. Software assets include software licenses, physical software boxes, any shared software installers and software contracts. It is also worth remembering that successful SAM cannot be done without HAM processes in place. Due to its complexities, there is a number of dedicated SAM professionals and services currently available. Some SAM professionals have expert licensing knowledge, but not all SAM professionals focus on software licensing, they focus more on the process and governance side of things. If the organisation does not have the financial resources to hire both a SAM and software-licensing expert, then it is recommended to hire a SAM consultant or practitioner who has a strong understanding of Tier 1 vendors. 99.9% of organisations could not run without some form of software, so software should be considered valuable assets and managed correctly at all times. SAM helps do this and helps Developing the business case for IT Asset Management (ITAM) 5

6 organisations to get the most out of their software assets, from a financial point of view and also a usage point of view. Failure to manage software assets and licenses incorrectly can result in devastating fines and a damaged reputation for the organisation. 1.6 Other forms of asset management There are a number of different elements to consider with asset management, such as mobile asset management (MAM), printers, scanners and other physical hardware assets that the organisation considers an asset. These assets are also managed by ITAM so need to be taken into consideration when building the business justification. As mentioned previously, the organisation needs to establish and set a basis on what is defined as an asset. It may be a financial value, or it may be a device that has sensitive data or some form of unique features that make it an asset. Either way, these definitions need to be established and managed by ITAM. ITAM will help to effectively manage these assets throughout their lifecycle, just like it will with other forms of assets. This is turn means that those assets will be used effectively, and the financial elements attached to the assets managed correctly. ITAM will also help speed up the procurement or request process for other assets, thus reducing the waiting time or SLA s (service level agreements) for such devices.

7 Part 2: Identifying the ITAM goals (IT and overall business perspective) Whilst building the business justification for ITAM, the organisation needs to establish what they want to gain from ITAM and what they want ITAM to cover (processes, assets, financials etc). This varies from business to business, but the core requirements and definitions of ITAM remains the same. 2.1 Establishing what ITAM means to the organisation Before an organisation implements any project there needs to be a clear justification as to what falls under the projects remit. Parameters need to be set out at the beginning to any ITAM project so that the business and the users are aware of what falls under the ITAM remit. It may be the case that the organisation already has a hardware department, or a system in place for the management of mobile devices, so ITAM needs to work around or be integrated into any existing methods and processes. It would be useful for the ITAM professionals to speak to other areas of the business to get their thoughts on what they would like ITAM to cover. If there are existing departments or users that are managing aspects of ITAM, then communication with these users is vital in understanding what they do, how ITAM can help, and whether or not they need to be moved to the ITAM team. It s this stage that the ITAM professional should provide the business with a definition on what ITAM is. This will help senior management (in conjunction with the ITAM professional) identify what elements of ITAM should go where within the organisation, and what areas of ITAM require urgent, immediate attention. 2.2 On-going goals and objectives Short-term goals relates to issues and risks that can be addressed swiftly, and with little effort. There are big wins to be had at this stage of ITAM implementation. Firstly a short-term goal could be to introduce basic ITAM processes and policies to the organisation. If an organisation has no pre-existing ITAM processes then it may end up being a case of starting new ones from scratch. Processes are a vital part of ITAM, so should be implemented as soon as a project starts, even if they are basic. Basic ITAM processes are better than no ITAM processes! It is also important to set out policies for users to follow, such as an Acceptable Usage Policy that highlights what users can and cannot do with business owned assets. Short-term processes and procedure examples: 1. Ensure users understand acceptable use 2. Create and implement basic ITAM processes 3. Stop users purchasing assets via personal credit cards 4. Ensure users know the correct process for requesting new hardware/software/devices 5. Ensure senior management communicate ITAM changes to users Short-term goals for HAM could be set around the IT department recouping hardware from users that no longer have a need for it. A lot of HAM overspend within organisation is due to the fact users keep hardware under their desks, or in drawers in case they need it in the future. That should be considered a company asset, so needs to be used. Another good starting point for HAM is to define what manufacturer of hardware will be used across all sites and areas of the business. This will result in savings in hardware contracts and also allows the organisation s helpdesk staff to focus their expertise on one particular manufactures hardware, thus reducing repair times. Developing the business case for IT Asset Management (ITAM) 7

8 Short-term HAM goals include: 1. Inventory all hardware 2. Recoup all unused hardware 3. Standardise hardware 4. Ensure hardware is disposed of correctly SAM short-term goals are a little easier to define. The organisation can start to look at the biggest financial licensing risks, and start to address the non-compliancy. Depending on the sources of data an organisation has, they can look at an inventory tool and physically audit each user by asking if they still use the software, and what they use the software for. Or, if the organisation has an ITAM solution that shows usage then they can actively look and see if a user is using the software adequately, and if not remove it from their machine. Examples of SAM short-term goals: 1. Start to address the non-compliancy of vendor X 2. Start the internal audit process for vendor Y 3. Set basic SAM policies and processes 4. Ensure the procurement of all software is through the right channels 5. Start to standardise the software in use Finally, there may be other elements of ITAM that an organisation can define short-term goals for. For example, new processes around mobile assets could be introduced. These processes could state that users are unable to bring in their own device (BYOD) and that data roaming needs to be switched off if a user travels abroad. Furthermore, the organisation can start to manage mobile devices more effectively, either by having a list of approved users and devices, or using an MDM solution to inventory mobile assets. Examples of other short-term goals: 1. Stop BYOD 2. Start keeping a record of approved corporate device users 3. Implement MDM processes 4. Ensure users know to switch of data roaming when abroad 5. Define acceptable use of company owned devices 2.3 Long-term goals and objectives Long-term goals and objectives can be anything from 6, 12 or 18 months, depending on what the organisations considers long-term. There are a number of examples of long-term goals for ITAM: - Reduction in software spend - Reduction in hardware spent - Shorter request times for hardware and software - Getting the top 5 vendors for the organisation audit ready - Implementing basic ITAM processes The organisation needs to have a clear understanding of what they want as a final goal or objective of the ITAM project. There will be a stage where ITAM becomes BAU (business as usual), but what is the final goal or indicator that means the organisation have got to that stage? That will be up to the organisation to define.

9 Part 3: The positives of ITAM Demonstrating how ITAM can have a positive effect on the organisation helps build the business case for investing time, resources and money in an ITAM project. There are a number of key positives to implementing ITAM, such as the following aspects. 3.1 Actively addressing risks There are a number of risks within an IT department, with the majority of the most costly falling under the ITAM remit. If an organisation is actively addressing their risks then naturally those risks will pose a less severe threat. Whilst ITAM risks may never fully go away it is important for an organisation to know and understand what hardware and software risks they have, and start actively trying to make a change. ITAM is all about helping to avoid a mess, but it can also help clear any mess an organisation has already got themselves in. It is important for an organisation not to get bogged down in trying to address every risk that they face, but instead prioritise the greater risks. It is up to the organisation how they prioritise their risks, it may be by non-compliance or by financial risk, or if they are aware of an impending audit they may choose to focus on that particular vendor. There needs to be clear direction on what risk to address first. Spending time trying to get WinZip compliant over addressing Microsoft or datacentre licensing issues simply is not worth it. WinZip licenses are not expensive, and they are unlikely to audit, whereas Microsoft pose a bigger threat. Address the biggest risks first as otherwise you may end up wasting time addressing small risks and never get a firm hold on the bigger risks. 3.2 Cost savings One of the biggest business justifications for ITAM is the fact that there are a number of large cost savings to be made through ITAM. Hardware and software is expensive, so if an organisation has the right ITAM processes implemented and expert negotiators, then ITAM can help the organisation save an awful lot of money. With ITAM processes an organisation can save money by keeping a track of their hardware assets, and making sure the IT department receives back any hardware assets (such as desktops and laptops) that can be recycled to another or new user. This can by done via an ITAM tool and also by implementing a process that states that all un-used equipment must be returned to the IT department. However, there may be a number of hoarders within the organisation. If this is the case, then it is important to get an understanding and also justification as to why a user has more than one desktop, laptop or other form of hardware asset. It may be the case that the user has recently received a new laptop, but is keeping their old one under the desk. The same goes for software assets. All software and hardware ultimately belongs to the organisation, so they need to be utilized and be in active use. There are massive savings to be made on software licenses within the datacentre environment. This is where the most expensive and complex licenses are, so that is where the biggest savings are to be made. There are also savings to be made on the desktop environment, and it is argued that it is easier to physically make changes within the desktop environment. Many organisations start here, as they believe it to be simpler and enable them to get quick wins, but the datacentre is where the biggest and quickest wins could potentially be. 3.3 Best practice HAM and SAM Hardware assets need to be managed effectively, and ITAM is best practice for doing so. Hardware assets need to be procured from the right routes and vendors, and hardware also needs to be disposed of in the correct and legal way. Developing the business case for IT Asset Management (ITAM) 9

10 Software spend is a large proportion of any IT budget, so the software, licenses and overall spend needs to be managed correctly. SAM is part of ITAM, and is best practice for managing software assets. This basically means that ITAM will help organisations manage their software assets effectively and to a legal standard. If an organisation is seen to be following best practice then it increases their IT reputation and is also a benefit should the organisation encounter any audits. 3.4 IT improvements ITAM can assist with general IT improvements. With the right ITAM processes in place, SLA s for the service desk will improve, support for software and hardware will end up being more specialist and the overall IT department will become more streamlined and effective. This will also help enhance IT s reputation within the business. 3.5 Business improvements Along with IT improvements, ITAM can also help with overall business improvements. ITAM data and processes can help assist the business with their overall goals and also help towards the business successes. ITAM can also help the business improve other areas through ITAM, such as finance, development and marketing through cost savings and risk mitigation. ITAM can also help increase an organisations reputation within hardware and software circles. If an organisation is vocal in its support of ITAM and has a proven record of successfully following ITAM processes and policies, then this will be a big boost to the organisations reputation and may also help ward off auditors.

11 Part 4: What resources will be required to implement ITAM? Implementing ITAM is a long process that involves a number of different resources. It is up to the organisation what resources they use for the ITAM project, but there are a number of vital resources that are required for successful implementation. 4.1 Will your ITAM resources be internal or external? This is a key question for any organisation that wishes to implement ITAM and should be asked during the project planning stage. There are a number of positives and negatives for both approaches, and it depends on the organisations environment on whether they outsource ITAM or keep it in-house. 4.2 Internal resources A number of organisations choose to keep their ITAM project internal. This means that the organisation needs to invest in a number of resources to allow them to successfully implement and do ITAM. Depending on the maturity of the ITAM estate, there may be large financial outgoings at the start of the ITAM project, as investments will need to be made in a number of areas. - ITAM Professional (times this by the number of professionals the organisation deems are required for the ITAM project) - ITAM solution (this may not be one single solution, but different modules based on the organisations requirements) - Senior management sponsor (may already be an internal resource, responsibilities need to be defined) - ITAM team (depending on the size of the organisation and the number of assets, it may be a requirement for more than one ITAM professional to be hired) There are also additional, specialist resources that an organisation can acquire should they see fit. An ITAM expert can lead the project, but it may make sense to then hire specialist managers for the key ITAM areas. This will also help speed up the implementation process, and the organisation will see results quicker: - Hardware Asset Manager (responsible for the management of hardware assets throughout their lifecycle. Also responsible for the hardware asset management data from the ITAM solution) - Software Asset Manager (responsible for the management of software assets throughout their lifecycle. Responsible for managing compliancy, software spend, software processes and the software and license information provided by the ITAM solution) - Mobile Device Manager (responsible for the management of mobile assets throughout their lifecycle. Also responsible for the management of data from any MDM solution) - Project Manager (if ITAM is considered a project, getting an experienced project manager in will help with the administration and general direction aspects). Depending on the size of the organisation and the ITAM requirements, it may also be worth hiring a dedicated Software Licensing expert. ITAM and SAM professionals will have a strong understanding of software licensing, but sometimes their expertise remain around the management of software assets, process creation and general governance rather than licensing expertise. 4.3 External resources Developing the business case for IT Asset Management (ITAM) 1 1

12 If the organisation does not have the internal resources or capabilities to successfully implemented and manage ITAM, then there are a number of external resources that can be used. Managed Service Providers (MSP), Large Account Resellers (LAR s) and ITAM consultants are all good options when moving the ITAM project externally. Managed Service Providers are experts in ITAM and can provide all of the services and support required for an organisation to successfully implement and then subsequently manages ITAM. MSP s are expensive and will usually send professionals to work onsite for the organisation for a set number of agreed days. This in effect means that the organisation will have a physical ITAM team during the ITAM project, thus making it seem as though they have internal resources. A number of MSP s have close relationships with certain ITAM tool providers, so they may insist that you install the ITAM tool they recommend, regardless of compatibility with the organisations environment. However, they may be able to assist the organisation in getting a good deal on licenses and implementation of such solution, something that may not be available if the organisation didn t use the MSP s services. Large Account Resellers usually provide advice on acquiring new software licenses or negotiating a license agreement renewal. Furthermore, LAR s also provide hardware contracts for organisations. Some LAR s have specialist ITAM services that are available to anyone for a set fee per month, quarter or on a yearly basis. Some LAR s can provide parttime or full-time support and help, and are generally cheaper than MSP s but have less expertise and will have multiple clients at any one time. ITAM Consultants are independent experts that can be used on a permanent or contracted basis. As they are independent they have no bias towards any technologies or vendors, and are likely to have vast experience in implementing ITAM. They can usually hit the ground running and provide quick wins from both a financial aspect (cost savings on hardware and software) and also with implementing sophisticated ITAM processes. Again, as with other outsourcing options, ITAM consultants can be an expensive investment. However, it may be worth investing more in hiring an ITAM consultant for 6 months than hiring someone with less expertise and having them for a few years and making the same progress. It is down to the individual organisations preference. If an organisation decides to outsource its ITAM project, then they need to ensure that they keep in touch with the outsourced location and keep updated on what they are doing and what progress they have made. Even though the organisation themselves are not doing ITAM, they are still responsible for all of the risks and legal issues, so the organisation still needs to have a vested interest in ITAM. If audited, some outsources will help shoulder some of the responsibility for any discrepancies. They will also help support the organisation through the audit process, and will also help rectify any issues once the auditors have left. If an organisation wants to outsource their ITAM project then they need to carefully choose the company they wish to work with. It could end up being a long and expensive relationship, so the organisation needs to ensure that they get value for money and that the outsourcer can make a real difference and improvement to the organisation. 4.4 Technologies There are a number of ITAM tools available on the market today, and the technologies used for ITAM are becoming more sophisticated and comprehensive. The solutions need to use certain data sets to pick up information. Many of them have their own agent or client, whilst others also offer integration with third-party inventory and data tools such as Microsoft s

13 SCCM. An organisation needs to implement a solution that works for them and their environment; otherwise the solution will never be fully utilized. Overall ITAM solution ITAM solutions are all-in-one solutions that do all aspects of ITAM. However, it may not be as sophisticated or as feature rich as specialist solutions. There will be elements that allow users to manage desktop ITAM, datacentre ITAM, hardware asset management, contract management and license management. Some ITAM solutions also have MDM integration now. If they do not have integration, then there is usually some sort of custom objects field that allows organisations to manually manage any devices or assets that are not inventoried by the solution. ITAM solutions can be either on-premise or provided by MSP s or LAR s within a hosted environment. It is up to the organisation how they implement a solution as it depends on the internal resources and financial constraints that the ITAM project may have. SAM solution SAM solutions primarily focus on the software element of ITAM. They also provide hardware information for the assets that software is installed on. SAM solutions provide users with the grounding for establishing license usage, contract management and the ability to manage software assets throughout their lifecycle. Some SAM solutions provide enough features and data for organisations to manage their hardware assets in tangent with the software assets. Using a SAM solution will help the organisation have complete transparency of the whole desktop SAM environment, and some elements of the datacentre environment. Datacentre solution Datacentre solutions are sophisticated solutions that help with the management of datacentre software, licenses and data. These solutions are also expert in managing the virtual environment and provide users all the information and data that is required to effectively manage software in the virtual environment. Some solutions also offer enhanced datacentre features as add-on modules, whereas there are a number of solutions that primarily focus on the datacentre environment. It us up to the organisation to establish which method work best for their environment. Mobile Device Management solution (MDM) Mobile device management, (also known as mobile asset management or MDM) is quickly becoming another asset management aspect that ITAM needs to manage. There are a number of dedicated MDM solutions on the market today that have a number of sophisticated features. MDM is an emerging market, with organisations starting to invest heavily in mobile devices such as tablets, point of sale devices (PoS) and also wearable assets (iwatch). One of the main issues within MDM is the management of data. This includes data on the phone and also data roaming. Data roaming can cost an organisation hundreds of thousands of pounds a year if it is not managed correctly. MDM solutions can help monitor the usage and also the applications installed on a mobile asset. MDM solutions can also help manage sensitive data that are on tablets. A number of solutions provide a wipe function that means that all of the contents on the device can be wiped remotely should the mobile device be lost or stolen. Depending on the organisations Developing the business case for IT Asset Management (ITAM) 1 3

14 sector, there may be big fines for organisations that loose devices with data on them as it breaches a number of regulations and laws. Specialist software vendor s modules/solutions (Oracle, IBM, SAP etc.) There are a number of SAM or ITAM tools that have a specific focus on managing a certain Tier 1 vendor. This may be integrated already into the solution, or may be purchased as an add-on. As these solutions primarily focus on managing one vendor, they are extremely complex systems that provide huge amounts of data to manage expensive, specialist vendors. As we mentioned a number of ITAM solutions provide addition add-ons to their existing ITAM solutions, so the user can integrate the ITAM tool with the addition modules. The reason as to why vendors such as Oracle, SAP and IBM need a different system for managing data and licenses is because the environments in which they are installed on and in use in are complicated, and the licensing metrics are even more so. If an organisation has a big investment or a big estate in a specific vendor, then it is highly recommended that during the process of building the business case for ITAM that they look at a specialist module for managing any Tier 1 vendors. This could save an awful lot of money in the long run. There is no silver bullet solution that can do everything. Whilst the technologies are brilliant and a vital part of any ITAM project, they still need the right people to manage and interpret the data being shown by the solution. It is also worth noting that the organisation needs to trust the data being fed into the solution. If the data is untrustworthy or inaccurate then it makes a solution as good as useless. Rubbish in always equals rubbish out.

15 Part 5: Building the justification The business justification for ITAM is usually a document that is presented to senior management. Before compiling such a document, the allocated ITAM project or professional needs to undertake both internal and external research. This will help to build a relevant business justification specifically for the organisation in question and their requirements. 5.1 Understanding current issues It is important that the ITAM professionals talk to all areas of the business and understand the current issues that relate to hardware, software, mobile devices and IT process. This is a key part of internal research that can help shape the ITAM project and make a real difference to the organisation. One of the key areas that usually crops up when discussing current issues is the fact that the current processes are not adequate, or haven t been updated for a while. A good method for this is to contact each department manager and have a sit down meeting with him or her. Let them talk about the issues they are facing with regards to IT, hardware or software and explain how ITAM can help to rectify those issues. Furthermore, it is good to get an understanding on how IT as a whole is viewed by the rest of the organisation. 5.2 Research ITAM and how it can help improve the business Make sure the ITAM professionals research ITAM as much as possible whilst building the business case. Use the Internet, network online and in person, attend events, do anything that will help improve the ITAM knowledge of the team. This is also a good opportunity to understand what was successful for other organisations when implementing ITAM and how they overcame any issues that arose. There are a few books and resources that can provide a textbook way of doing ITAM, but the best way of understanding how best to implement ITAM is to talk to those that have already done so. They will provide invaluable information and advice, and will be able to advise on what works and what does not work when implementing or doing ITAM. However, each organisation is different and different industries have different regulations and ways of doing things. What worked in the public sector may not work for a large private organisation, or a bank for example. Use the information research to tailor the ITAM project to the organisations needs. There is no single document that states do this and everything will be ok because each organisation and ITAM professional is different, and has different methods. Compiling as much research and educating the organisation and the ITAM professional as much as possible will help provide a firm understanding and grounding for implementing an ITAM project. ITAM is complicated with a number of different aspects associated with it, so it takes an experience expert to get a project up-and-running. 5.3 Understand the overall goals of the business. Identify how ITAM can help What does the organisation as a whole want to achieve over the next six months or year? It may be the case that ITAM can help achieve those goals in some way. ITAM data and processes are becoming ever more important in supporting the overall business goals and objectives, as it can provide a lot of information and data that can support and drive change. For example, the business may want to upgrade every users desktop machine to a newer model and an updated operating system. ITAM data can help identify any risks that may be outstanding and also help identify any red herrings, such as software that would not be compatible with the new operating system or new hardware. Developing the business case for IT Asset Management (ITAM) 1 5

16 ITAM data can help achieve the goals of the business in a quicker more efficient manner, as well as questioning any potential issues that the business may not have thought about. Without ITAM data a number of projects may encounter delays and unexpected financial outlays, and then the business will be delayed in reaching its final goals. Furthermore, ITAM can help identify goals and objects through its vast array of data and information. It is important that the ITAM professionals speak to the business and get a better understanding of how things work and what the aims and plans are for the future. This way, the ITAM professional can make sure that they assist with any relevant future plans and can also build the business justification and general ITAM case around helping the organisation meeting its future goals and objectives. 5.4 Understand future projects or plans that can be helped by ITAM Communication is an extremely important factor throughout the ITAM project. It is vitally important that when building the business justification for ITAM that the ITAM professional talks to other managers to understand what projects they are currently working on and what plans they have for the future. They may not understand that their future plans will have an impact on software or hardware, aspects that ITAM can assist with. This is also a good chance to provide education to other managers on ITAM and how it can help them with current and future work. This would be a good time for the ITAM professional to provide examples on how ITAM can help the managers future projects, such as quicker procurement times for hardware and software thanks to new ITAM processes, or a reduced spend on that managers software budget through internal audits (also known as internal reviews). As we ve mentioned throughout this document it is important to provide staff members with real-life examples of how ITAM can help them. They may have a number of questions and may seem reluctant at first (experience dictates that if users think its more work for them, they don t want to do ITAM. Highlight the fact ITAM will make their life easier!), but once ITAM has been properly explained and the benefits highlighted they are far more likely to be positive and responsive to any future ITAM communications. 5.5 Generate a buzz and buy in for ITAM Whilst building a business justification it is always useful to generate a buzz and excitement about ITAM. This can be done by educating end users and management staff on the benefits of ITAM and how their working life will be made easier if the organisation implemented ITAM. What has worked well in the past when organisations have implemented ITAM is to provide workshops or virtual sessions about ITAM and why the business wants to implement ITAM. Showing end-users examples of how ITAM can improve processes, costs and their general day-to-day work can create a buzz around ITAM, thus further generating another reason as to why the organisation should implement ITAM. Having end-users on-board and understanding how ITAM will help the organisation will make the ITAM project and implementation phase a lot smoother and easier. If the ITAM project already has the support of managers and end-users, any disruption that may happen during the early stages will be greeted with a different, less critical attitude, as the users understand why certain actions are happening. A way in which generating a buzz around ITAM can help with short-term ITAM wins is when the organisation wants to conduct an internal review and recycle any unused software licenses. Based on experience, if the end-user does not have an understanding or does not support the ITAM project (which is primarily because they have not been told what ITAM is, or don t understand why the organisation is doing ITAM) then they are likely to be hostile and difficult when the ITAM team try and recycle an unused license of theirs.

17 However, if the ground work has already been laid and the end-user understands why their license is being taken away and recycled, the ITAM team will have a lot less hassle in reclaiming the license as the user understand the process and how recycling licenses saves the organisation (and potentially their department) money. Developing the business case for IT Asset Management (ITAM) 1 7

18 Part 6: Gaining senior management support It is vital to have senior management support for an organisations ITAM project. Senior management can provide authority and guidance on implementing or starting the ITAM project, and also uses the fear factor in getting end-users to comply with the ITAM professional s demands. Before gaining senior management support, the ITAM team need to present their case to the senior managers. There are usually two ways in which this can happen; either a document highlighting the importance of ITAM and how it can help the organisation, a presentation to the board, or both. 6.1 Compile a document for the board/senior management on ITAM Before the ITAM professionals present the business case for ITAM to the board, it is common practice to create a document for the board to read. The document should be as high-level as possible, and by that we mean don t go into all of the nitty gritty details. Experience has taught us that senior management only want to know the overall goals and actions of an ITAM project, not a detail deep-dive. However, like we ve said, organisations are different, and some may require a more in-depth document. Either way, the core documentation should provide information on: - The overall goals of the ITAM project - What resources are required - Why the organisation should implement ITAM - Current risks that ITAM can manage/address - Summarised list of short-term and long-term actions - Rough time-scale for completed actions In experience, it is also useful to include horror stories of organisations that haven t implemented ITAM and have been found non-compliant on software. Showing what could happen to the organisation (fines, financial outlays and damaged reputation) if they do not implement ITAM is a good way of making senior management sit up and take notice. They do not want to be the ones responsible for any bad publicity or large financial outlays that could be avoided, and ultimately the responsibility for any risks will lie with them. It is important that this document creates interest about ITAM; therefore it needs to be informative and thought provoking. If the senior managers want to ask questions or expand on any of the points within the documentation, then they may ask the ITAM professional to present the paper in a meeting or web conference. 6.2 Present the ITAM case to the board Based on experience, senior management like to see the ITAM staff present the business case for ITAM directly to them. This can be in the form of a meeting, presentation or phone conference. Either way, this is a good opportunity for the ITAM staff to emphasise why the organisation needs ITAM, and also allows for any questions or concerns that senior management may have. If an ITAM document has already been distributed to senior management, it is good for the ITAM staff to go over this document in detail (as much detail as time will allow). It is important for the ITAM staff to be relaxed and confident during the presentation, clearly emphasising the key benefits of why the organisation needs to invest and implement ITAM. In a number of organisations, this stage of building the business case could either be the kick-start ITAM needs or the senior management do not buy into it.

19 During the presentation it is good to use real life examples and data from any ITAM data sources that the organisation may already have. Using data and examples that actually relate to the organisation allows the senior management staff to paint a better picture of how ITAM can help the organisation. Using theoretical information or data does not work as well, but can still help the ITAM cause. 6.3 Identify a senior management sponsor Finally, when gaining senior management support it is important to establish which senior manager should be the ITAM sponsor. This person should have authority and be respected within the organisation, so they can be the senior level driver for the ITAM project. This will help lift the ITAM project off the ground, and as we ve mentioned before users will be far more responsive to change if the direction and communication is coming from the top. Based on experience, end-users are less responsive to a general ITAM professional during the early implementation stage, or even when the ITAM professional is trying to build business justification for ITAM. Having the senior management support will allow the ITAM professional to enforce any changes or recoup any hardware or software that is no longer in use with the support of the senior management. This ultimately means that if the end-user gives the ITAM team any hassle, the senior management sponsor can step in and be a firm hand! The senior management sponsor does not have to be an ITAM expert, but should have an interest in the subject. Having a sponsor can still work, even if there is no interest in ITAM, so long as they fully support the ITAM project and understand the aims and objectives of ITAM, and why certain actions and changes need to happen. Developing the business case for IT Asset Management (ITAM) 1 9

20 Part 7: Tracking ITAM progress To emphasise the importance of ITAM an organisation needs to track the progress made throughout the project. This can be done in a number of ways. 7.1 Create a baseline pre ITAM project Before the implementation of ITAM it is important to create a baseline or snapshot of the IT estate. This will help benchmark future progress and provides the ITAM team with valuable data to show senior management. A benchmark should show what the ITAM estate looked like before any form of ITAM project, warts and all! By doing this and taking regular snapshots of the ITAM estate, the organisation will be able to see progress both financially and from a process/business point of view. Having this type of data is invaluable to an organisation and will allow ITAM to continue to show its worth to the organisation. 7.2 Regular updates Regular can be defined by the organisation, but common practice is for ITAM updates on a monthly basis at the start of the project, expanding to every quarter when the project is more established. These updates should show what progress the ITAM project has made, and what improvements have been implemented since the last update. Updates can be in whatever format the organisation wishes, but experience suggests that a short one to two page document that highlights all of the changes is the best way to do it. This also allows the organisation to look back and see the progress made. 7.3 Process and policy improvement Processes and policies need to be reviewed and updated every six months or so. This is so that they are relevant and incorporate any new technologies or just a general update. It is important to keep the updated policy plus the old policy that was in use previously. This gives the organization the chance to view how processes and policies have changed over the course of the year. Viewing and comparing these document changes allows the organisation to see how ITAM is helping to improve the business, and how positive changes are occurring. 7.4 Software and hardware cost comparison Finally, a good method for tracking ITAM progress is to look at the software and hardware budgets for each year, and also look at the spend on hardware and software. The organisation needs to take into account the savings made on recycling software licenses and also recycling hardware. The organisation can use the data from an ITAM solution, and by tracking the software licenses that have been recycled to identify how much money the organisation has saved. Furthermore, the organisation s software and hardware budget should be reduced thanks to ITAM. The amount of annual spend required on software and hardware, if the organisation implements ITAM properly will be significantly less than before ITAM had a presence within the organisation. Showing the differences in budgets is a great way of showing the benefits of ITAM and a great advocate of ITAM for the senior management.

21 Part 8: Addressing the risks As we have mentioned previously, ITAM helps address a number of risks. Whilst building the business justification for ITAM it is important to establish and present facts on how ITAM can help manage risks. There are also a number of risks that the organisation can manage during this phase of the project as it provides real life data and further justification for implementing ITAM. 8.1Financial ITAM can help address the financial risks that an IT department faces, and as we ve established one of the big drivers for businesses deciding to implement ITAM. Noncompliancy, unused software and ill-managed hardware can all result in un-necessary financial outlays or fines. There are a number of ways in which ITAM can help actively address financial risks, such as internal audits, contract negotiations, license recycling and also hardware recycling. Using ITAM data can also help organisations reduce their annual budgets for hardware, software and mobile devices by utilizing the existing assets the company owns. 8.2 Legal Software licensing is a complicated beast, with a number of different license metrics to understand and manage. Software compliancy is a big risk to an organisation, and can also result in financial risks if licenses are not managed correctly. Being non-compliant or running software without a license is illegal, and that s a fact. The way we view it is that organisations would never steal a laptop, a printer or another piece of expensive kit, so why steal software? If the organisation can t afford or manage the software, then it is simple. Do not purchase it. There are also hardware rules and regulations that must be abided by, with the disposal of hardware assets a key regulation that needs to be followed. There are strict rules on how organisations can dispose of certain hardware assets; so all organisations need to have a hardware disposal process in place. If a well-known organisation is being found out as being illegal in any aspect of ITAM, there are a number of auditing organisations that will publically shame the organisation. The likes of the Business Software Alliance (BSA) will post information about software non-compliance anywhere and everywhere. This can result in a bad reputation for the organisation and a possible drop in share price. ITAM can help organisations be audit ready, a state whereby they can deal with an audit with as minimal fuss as possible and also are fully aware of any compliancy risks that the organisation faces. 8.3 Time Employee s time should also be considered a risk that ITAM can help manage. As ITAM relates to hardware and software IT assets, both vital to employee s jobs, any delays or disruptions with hardware or software could result in downtime for the employee and work Developing the business case for IT Asset Management (ITAM) 2 1